Hedge Fund Definition

From Jim Cramer: 
It is a fund that can go long or short stocks, hence the hedge connotation. 

But it is different from a regular fund in the way its managers are compensated. 

Regular money managers get a percentage of the assets.

Hedge fund managers get a percentage of the assets and take 20% of the gains, both realized and unrealized.

 compensate
相殺する、釣り合いを取る
補う、埋め合わせをする

Reading often compensates for lack of knowledge. 
読書はしばしば知識不足を埋め合わせる。

Dictionary of Financial Terms - from here